Hyatt Hotels Corporation has recently made an announcement confirming that it has agreed to buy the international lifestyle hotel management company Two Roads Hospitality. The acquisition will reportedly constitute a base purchase price of $480 million and depending on certain individual terms to be decided on the completion of the deal, Hyatt may invest a further $120 million in the venture.
Sources close to the matter mentioned that by adding the established lifestyle brands of Two Roads and also managing agreements for its properties, Hyatt would be able to expand its presence into 23 new markets. Along with enhanced lifestyle hotel experiences, Hyatt would be delivering improved benefits for its guests and the member of World of Hyatt while extending relationships with valued hotel owners.
Mark Hoplamazian, president and CEO Hyatt Hotels Corporation, stated that the two companies have a shared commitment towards genuine care and delivering unique experiences to discerning travelers. He further pointed out that combining the brand presence and development plans of Two Roads in Asia with Hyatt’s existing hold over the region will enable the company to expand rapidly in a significant part of the world.
Chief executive of Two Roads, Jamie Sabatier said the unique position of Hyatt in the marketplace offers the benefit of global scale as well as the ability to maintain meaningful relations with team members, owners and guests. Supposedly, after the deal is closed, which could happen later in the year, Hyatt would be creating a dedicated lifestyle division to help bring together the operations of lifestyle brands of both the companies.
The sources indicated that Hyatt would provide more information about the agreement, including initial estimates of earnings accretion in 2019, during the third quarter earnings call on 31 October 2018. Hyatt is planning to incorporate the Two Roads brands within the World of Hyatt program in 2019, allowing its members to earn and redeem points across various options and to drive hotel occupancy from a loyal group of holidaymakers that book directly, spend more and stay more.